Correlation Between Binh Duong and Tng Investment
Can any of the company-specific risk be diversified away by investing in both Binh Duong and Tng Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Binh Duong and Tng Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binh Duong Construction and Tng Investment And, you can compare the effects of market volatilities on Binh Duong and Tng Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Binh Duong with a short position of Tng Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binh Duong and Tng Investment.
Diversification Opportunities for Binh Duong and Tng Investment
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binh and Tng is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Binh Duong Construction and Tng Investment And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tng Investment And and Binh Duong is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Binh Duong Construction are associated (or correlated) with Tng Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tng Investment And has no effect on the direction of Binh Duong i.e., Binh Duong and Tng Investment go up and down completely randomly.
Pair Corralation between Binh Duong and Tng Investment
Assuming the 90 days trading horizon Binh Duong is expected to generate 1.35 times less return on investment than Tng Investment. But when comparing it to its historical volatility, Binh Duong Construction is 1.41 times less risky than Tng Investment. It trades about 0.06 of its potential returns per unit of risk. Tng Investment And is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,382,600 in Tng Investment And on November 8, 2024 and sell it today you would earn a total of 1,017,400 from holding Tng Investment And or generate 73.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binh Duong Construction vs. Tng Investment And
Performance |
| Timeline |
| Binh Duong Construction |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
| Tng Investment And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binh Duong and Tng Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binh Duong and Tng Investment
The main advantage of trading using opposite Binh Duong and Tng Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binh Duong position performs unexpectedly, Tng Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tng Investment will offset losses from the drop in Tng Investment's long position.The idea behind Binh Duong Construction and Tng Investment And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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